v3.24.0.1
Revenue
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue

16. Revenue

The table below presents detail of revenue for 2023, 2022 and 2021 and includes the product mix of investment advisory, administration fees and securities lending revenue and performance fees.

(in millions)

2023

 

 

2022

 

 

2021

 

Revenue:

 

 

 

 

 

 

 

 

Investment advisory, administration fees and securities lending revenue:

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

Active

$

2,000

 

 

$

2,147

 

 

$

2,571

 

ETFs

 

4,418

 

 

 

4,345

 

 

 

4,658

 

Non-ETF Index

 

743

 

 

 

711

 

 

 

771

 

Equity subtotal

 

7,161

 

 

 

7,203

 

 

 

8,000

 

Fixed income:

 

 

 

 

 

 

 

 

Active

 

1,897

 

 

 

1,977

 

 

 

2,191

 

ETFs

 

1,230

 

 

 

1,122

 

 

 

1,201

 

Non-ETF Index

 

353

 

 

 

396

 

 

 

471

 

Fixed income subtotal

 

3,480

 

 

 

3,495

 

 

 

3,863

 

Multi-asset

 

1,203

 

 

 

1,299

 

 

 

1,414

 

Alternatives:

 

 

 

 

 

 

 

 

Illiquid alternatives

 

889

 

 

 

741

 

 

 

668

 

Liquid alternatives

 

572

 

 

 

633

 

 

 

629

 

Currency and commodities(1)

 

185

 

 

 

216

 

 

 

216

 

Alternatives subtotal

 

1,646

 

 

 

1,590

 

 

 

1,513

 

Long-term

 

13,490

 

 

 

13,587

 

 

 

14,790

 

Cash management

 

909

 

 

 

864

 

 

 

470

 

Total investment advisory, administration fees and securities lending revenue

 

14,399

 

 

 

14,451

 

 

 

15,260

 

Investment advisory performance fees:

 

 

 

 

 

 

 

 

Equity

 

99

 

 

 

49

 

 

 

153

 

Fixed income

 

4

 

 

 

25

 

 

 

48

 

Multi-asset

 

28

 

 

 

25

 

 

 

32

 

Alternatives:

 

 

 

 

 

 

 

 

Illiquid alternatives

 

273

 

 

 

296

 

 

 

208

 

Liquid alternatives

 

150

 

 

 

119

 

 

 

702

 

Alternatives subtotal

 

423

 

 

 

415

 

 

 

910

 

Total investment advisory performance fees

 

554

 

 

 

514

 

 

 

1,143

 

Technology services revenue

 

1,485

 

 

 

1,364

 

 

 

1,281

 

Distribution fees

 

1,262

 

 

 

1,381

 

 

 

1,521

 

Advisory and other revenue:

 

 

 

 

 

 

 

 

Advisory

 

81

 

 

 

56

 

 

 

68

 

Other

 

78

 

 

 

107

 

 

 

101

 

Total advisory and other revenue

 

159

 

 

 

163

 

 

 

169

 

Total revenue

$

17,859

 

 

$

17,873

 

 

$

19,374

 
(1)
Amounts include commodity ETFs.

The tables below present the investment advisory, administration fees and securities lending revenue by client type and investment style:

(in millions)

2023

 

 

2022

 

 

2021

 

By client type:

 

 

 

 

 

 

 

 

Retail

$

4,115

 

 

$

4,442

 

 

$

4,957

 

ETFs

 

5,834

 

 

 

5,671

 

 

 

6,074

 

Institutional:

 

 

 

 

 

 

 

 

Active

 

2,623

 

 

 

2,535

 

 

 

2,675

 

Index

 

918

 

 

 

939

 

 

 

1,084

 

Total institutional

 

3,541

 

 

 

3,474

 

 

 

3,759

 

Long-term

 

13,490

 

 

 

13,587

 

 

 

14,790

 

Cash management

 

909

 

 

 

864

 

 

 

470

 

Total

$

14,399

 

 

$

14,451

 

 

$

15,260

 

 

 

 

 

 

 

 

 

 

By investment style:

 

 

 

 

 

 

 

 

Active

$

6,534

 

 

$

6,789

 

 

$

7,455

 

Index and ETFs

 

6,956

 

 

 

6,798

 

 

 

7,335

 

Long-term

 

13,490

 

 

 

13,587

 

 

 

14,790

 

Cash management

 

909

 

 

 

864

 

 

 

470

 

Total

$

14,399

 

 

$

14,451

 

 

$

15,260

 

 

Investment Advisory and Administration Fees – Remaining Performance Obligation

The tables below present estimated investment advisory and administration fees expected to be recognized in the future related to the unsatisfied portion of the performance obligations at December 31, 2023 and 2022:

December 31, 2023

(in millions)

2024

 

 

2025

 

 

2026

 

 

Thereafter

 

 

Total

 

Investment advisory and administration fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternatives(1)(2)

$

204

 

 

$

174

 

 

$

152

 

 

$

164

 

 

$

694

 

December 31, 2022

(in millions)

2023

 

 

2024

 

 

2025

 

 

Thereafter

 

 

Total

 

Investment advisory and administration fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternatives(1)(2)

$

157

 

 

$

111

 

 

$

78

 

 

$

102

 

 

$

448

 
(1)
Investment advisory and administration fees include management fees related to certain alternative products, which are based on contractual committed capital outstanding at December 31, 2023 and 2022. Actual management fees could be higher to the extent additional committed capital is raised. These fees are generally billed on a quarterly basis in arrears.
(2)
The Company elected the following practical expedients and therefore does not include amounts related to (a) performance obligations with an original duration of one year or less, and (b) variable consideration related to future service periods.

 

Change in Deferred Carried Interest Liability

The table below presents changes in the deferred carried interest liability, which is included in other liabilities on the consolidated statements of financial condition, for the year ended December 31, 2023 and 2022:

(in millions)

2023

 

 

2022

 

Beginning balance

$

1,420

 

 

$

1,508

 

Net increase (decrease) in unrealized allocations

 

577

 

 

 

175

 

Performance fee revenue recognized

 

(214

)

 

 

(263

)

Ending balance

$

1,783

 

 

$

1,420

 

Technology Services Revenue – Remaining Performance Obligation

The tables below present estimated technology services revenue expected to be recognized in the future related to the unsatisfied portion of the performance obligations at December 31, 2023 and 2022:

December 31, 2023

(in millions)

2024

 

 

2025

 

 

2026

 

 

Thereafter

 

 

Total

 

Technology services revenue(1)(2)

$

131

 

 

$

73

 

 

$

56

 

 

$

59

 

 

$

319

 

December 31, 2022

(in millions)

2023

 

 

2024

 

 

2025

 

 

Thereafter

 

 

Total

 

Technology services revenue(1)(2)

$

112

 

 

$

51

 

 

$

35

 

 

$

40

 

 

$

238

 
(1)
Technology services revenue primarily includes upfront payments from customers, which the Company generally recognizes as services are performed.
(2)
The Company elected the following practical expedients and therefore does not include amounts related to (a) performance obligations with an original duration of one year or less, and (b) variable consideration related to future service periods.

In addition to amounts disclosed in the tables above, certain technology services contracts require fixed minimum fees, which are billed on a monthly or quarterly basis in arrears. The Company recognizes such revenue as services are performed. As of December 31, 2023, the estimated annual fixed minimum fees for 2024 for outstanding contracts approximated $1.1 billion. The term for these contracts, which are either in their initial or renewal period, ranges from one to five years.

The table below presents changes in the technology services deferred revenue liability for the year ended December 31, 2023 and 2022, which is included in other liabilities on the consolidated statements of financial condition:

(in millions)

2023

 

 

2022

 

Beginning balance

$

125

 

 

$

122

 

Additions(1)

 

92

 

 

 

99

 

Revenue recognized that was included in the beginning balance

 

(84

)

 

 

(96

)

Ending balance

$

133

 

 

$

125

 
(1)
Amounts are net of revenue recognized.